The Lagos State Bond will span over a period of three to five years, the State Governor, Akinwunmi Ambode has said.
According to the Governor, for the current appropriation year, the state can only draw N60 billion from the pool of N500 billion.
Explaining further on Thursday, the Governor said: “Before you can actually even appropriate it in your budget, you need that programme and that programme was what was approved by the House. But in the appropriation of 2016, what is in the Appropriation law for 2016 is just N60billion. So, it’s from this Programme that we are pulling out this N60billion”.
He added: “So, for next year’s budget, if the House approves for instance N80 billion as bond, we don’t need to go back to the House again after they have approved that budget, you draw from that issuance programme and take another amount which is approved for 2017 budget.
“If they approve any amount for 2018 budget, you take from that pool of N500 billion, which can take the next five to ten years. So it’s just a lump sum which you now draw down based on the authorization by the House. That is the technical explanation. It’s not as if the state wants to go and take another N500 billion, it’s just a requirement by Securities and Exchange Commission (SEC) so that you follow the procedure on a yearly basis.”